The Bay Area median home price trend remains positive. (See July 2013 data in the SF Bay Area Housing Trends Page above) The big year-over-year percentage gains are reflective of the depressed prices of a year ago when short-sales and foreclosures were still dominant characteristics in the market. Locally, there is talk that things are cooling off a little but the July inventory of homes for sale in San Mateo was about 1.8 months. Not much different from the month before and so much better than a year ago. The big question in the near future remains, “What direction will mortgage rates go?”